STATE OF NEW MEXICO

COMMISSIONER OF PUBLIC LANDS P. O. BOX 1148

SANTA FE, NEW MEXICO 87504-1148

September 15, 2020

STATE OF NEW MEXICO

OIL AND GAS LEASE

SALE NOTICE

September Oil & Gas Lease Sale

The New Mexico State Land Office Oil & Gas lease sale for August will be held online in

sealed bidding format. Online bidding will commence September 8th 2020, one week prior

to the lease sale date. Sealed bidding will close at 8:30 am MDT on September 15th 2020.

The online auction will be conducted by the State Land Office auction house contractor,

EnergyNet. When posted, the online tract listing can be viewed at www.energynet.com.

Prospective bidders must register with EnergyNet at

https://www.energynet.com/govt_listing.pl and abide by the terms and conditions

therein.

PAYMENT FOR ALL WINNING ONLINE LEASES SHALL BE MADE

THE DAY OF THE SALE, BY WIRE TRANSFER, OR IN-PERSON AT

THE NEW MEXICO STATE LAND OFFICE BY CASH, CHECK,

MONEY ORDER, CERTIFIED CHECK, OR ELECTRONIC TRANSFER

ON A SOLVENT BANK.

LATE PAYMENTS WILL BE REJECTED AND NO LEASE WILL BE

ISSUED FOR THAT TRACT.

(“The successful bidders shall file proper applications for the leases purchased and shall complete the payment of any balance due on their bids before the closing of the office

of the commissioner on the day of the sale.” §19-10-17(B) NMSA 1978.)

“Applications” are the lease information sheets as provided by EnergyNet. To verify wire transfer payment, submit copies of the dated wire instructions (sent to your bank) to

msena@slo.state.nm.us and ssandoval@slo.state.nm.us by COB of the State Land Office on the day of the sale. General contact and inquiries should be directed to

amarks@slo.state.nm.us.

When you provide a check as payment, you authorize the State of New Mexico to either use information from your check to make a one-time electronic fund transfer from your

account or to process the payment as a check transaction. Please be advised that payments will be drafted from your account immediately upon receipt. All invoices will, pursuant to 19.2.100.15 NMAC, include the minimum initial charge for any lease for

minimum rental (which shall be no less than $100.00 or the annual rental, whichever is greater), plus the application fee, plus the winning bid for the lease tract.

Prior to development, use, or occupation of the lease area, an oil and gas

lessee must have a sufficient bond on file with the State Land Office.

NEW MEXICO STATE LAND OFFICE LEASE SALE NOTICE ****************************** SEALED TRACTS ****************************** Regular Sale - ONLINE SEALED BIDDING COMMENCES 8 SEPTEMBER 2020. BIDDING FOR THE SEALED TRACTS WILL CLOSE

8:30 AM MDT ON 15 SEPTEMBER 2020. THE ONLINE AUCTION WILL BE CONDUCTED BY THE SLO CONTRACTOR ENERGYNET. NOTE : THE FOLLOWING TRACTS WILL BE OFFERED FOR SEALED BID PURSUANT TO THE NOTICES. LEASES FOR THE FOLLOWING TRACTS WILL BE ISSUED ON SECTION 19-10-4.3 NMSA 1978, DEVELOPMENT LEASE FORM, file(5) year term, 1/5th royalty, AND HAVE BEEN CLASSIFIED AND CATEGORIZED IN COMPLIANCE WITH 19-10-3 NMSA 1978. ========================================================================================================================== TRACT COUNTY SEC TWP RGE DESCRIPTION ACRES PRIMARY MINIMUM # (MORE OR LESS) RENTAL ACCEPTABLE BID ========================================================================================================================== 001 VC-001 Lea 32 16S 36E W2 320.00 $1.00 $50,000.00 002 VC-002 Lea 33 16S 36E E2E2 160.00 $1.00 $25,000.00 003 VC-003 Lea 34 16S 36E NW4, W2SW4, SE4SW4 280.00 $1.00 $35,000.00 004 VC-004 Lea 30 17S 36E LOT(S) 4 37.49 $1.00 $6,000.00 005 VC-005 Lea 19 18S 36E LOT(S) 1, 2, 3, 4, E2W2 309.60 $1.00 $11,000.00 006 VC-006 Lea 19 18S 36E NE4 160.00 $1.00 $6,000.00 007 VC-007 Lea 30 18S 36E LOT(S) 1, 2, 3, 4, E2W2 311.00 $1.00 $10,000.00 008 VC-008 Lea 30 18S 36E SE4 160.00 $1.00 $5,000.00 009 VC-009 Lea 04 19S 36E LOT(S) 3, 4, S2NW4, SW4 318.79 $1.00 $11,000.00 010 VC-010 Lea 09 19S 36E W2 320.00 $1.00 $11,000.00 011 VC-011 Lea 01 22S 35E LOT(S) 3, 4, S2NW4, SW4 321.20 $1.00 $100,000.00 012 VC-012 Lea 32 23S 36E S2S2 160.00 $1.00 $55,000.00 ALL HIGH BIDS ARE SUBJECT TO APPROVAL BY THE COMMISSIONER OF PUBLIC LANDS www.nmstatelands.org Page 1 Of 1

August 2020 Oil & Gas Lease Sale

The August lease sale was held online, in sealed bidding format.

There were 28 tracts offered, for a total of 4,880.11 acres, in Lea and Eddy Counties and sixteen

tracts were sold.

Total high bids: $583,740.00 for a per-acre average of $287.39. There were 17 registered

bidders from seven states.

Sale Month

Total Sale High Tracts Bid

Type Rest S T R

18 August, 2020

$583,740.00 $67,520.00 S 36 23S 25E

$67,520.00 S 36 23S 25E

$67,600.00 S 2 24S 25E

$67,000.00 S 27 16S 36E

Total $269,640.00 $314,100.00

% Total 86% $583,740.00

OG5BDSM1 NEW MEXICO STATE LAND OFFICE 08 BID SUMMARY FOR SALE ON 08-18-2020 16:25:75 PAGE 1

=================================================================================================================================== TRACT # LEASE # SEC TWP RGE DESCRIPTION ACRES BIDDER BID PRICE/ACR AMOUNTS���������������===================================================================================================================================VC-S-001 16 18S 31E NE4NE4, S2NE4, SE4NW4, SE4SE4 WITHDRAWN

VC-S-002 VC0775 00 36 23S 25E W2 320.00 DAKOTA RESOURCES INC (I) $67,520.00 $211.00

VC-S-003 VC0776 00 36 23S 25E E2 320.00 DAKOTA RESOURCES INC (I) $67,520.00 $211.00

VC-S-004 VC0777 00 2 24S 25E LOT(S) 3, NE4NW4, S2NW4, SW4 319.83 DAKOTA RESOURCES INC (I) $67,600.00 $211.36

VC-S-005 2 24S 25E LOT(S) 1, 2, S2NE4, SE4 WITHDRAWN

VC-S-006 VC0778 00 36 11S 37E W2 320.00 LEVI SAP NEI THANG $32,000.00 $100.00

VC-S-007 36 11S 37E E2 WITHDRAWN

VC-S-008 VC0779 00 13 15S 34E N2SW4 80.00 LEVI SAP NEI THANG $20,000.00 $250.00

VC-S-009 VC0780 00 13 15S 34E W2SE4, SE4SE4 120.00 LEVI SAP NEI THANG $32,000.00 $266.67

VC-S-010 12 15S 35E E2E2 WITHDRAWN

VC-S-011 VC0781 00 13 15S 35E NW4 160.00 LEVI SAP NEI THANG $32,000.00 $200.00

VC-S-012 23 15S 35E N2NW4, SW4NW4, SW4SW4 WITHDRAWN

VC-S-013 VC0782 00 7 15S 36E LOT(S) 3, 4, E2SW4 159.93 LEVI SAP NEI THANG $35,000.00 $218.85

VC-S-014 18 15S 36E LOT(S) 1, 2, E2NW4 WITHDRAWN

VC-S-015 VC0783 00 3 16S 35E SW4SE4 40.00 LEVI SAP NEI THANG $20,000.00 $500.00

VC-S-016 15 16S 36E SE4 WITHDRAWN

VC-S-017 VC0784 00 22 16S 36E NE4NE4 40.00 LEVI SAP NEI THANG $30,000.00 $750.00

VC-S-018 22 16S 36E NW4NE4, SE4 WITHDRAWN

VC-S-019 22 16S 36E N2NW4, S2SW4 WITHDRAWN

VC-S-020 VC0785 00 27 16S 36E E2 320.00 DGP ENERGY LLC $67,000.00 $209.38

VC-S-021 29 16S 36E N2NW4 WITHDRAWN

VC-S-022 30 16S 36E NE4NE4 WITHDRAWN

VC-S-023 VC0786 00 22 17S 35E E2NW4 80.00 MANZANO LLC $30,100.00 $376.25

VC-S-024 VC0787 00 24 18S 35E SW4NE4 40.00 LEVI SAP NEI THANG $20,000.00 $500.00

VC-S-025 VC0788 00 21 18S 36E W2 320.00 LEVI SAP NEI THANG $32,000.00 $100.00

VC-S-026 VC0789 00 21 18S 36E SE4 160.00 LEVI SAP NEI THANG $15,000.00 $93.75

OG5BDSM1 NEW MEXICO STATE LAND OFFICE 08 BID SUMMARY FOR SALE ON 08-18-2020 16:25:75 PAGE 2

=================================================================================================================================== TRACT # LEASE # SEC TWP RGE DESCRIPTION ACRES BIDDER BID PRICE/ACR AMOUNTS���������������===================================================================================================================================VC-S-027 19 20S 36E S2SE4 WITHDRAWN

VC-S-028 VC0790 00 29 20S 36E SE4SW4 40.00 LEVI SAP NEI THANG $16,000.00 $400.00

**** END OF REPORT ****

How may our Oil, Gas, and Minerals Division help you?

Communitization, Units, Commingling

Niranjan Khalsa 505-827-6628

Maria Pruett 505-827-5746 Scott Dawson 505-827-5791

Lease Sales, Nominations, Potash Enclave,

Geophysical Permitting

Allison Marks, 505-827-5745 amarks@slo.state.nm.us

Bonds, Shut-In Royalty, OGRIDS, Lease Expirations, Cancellations,

Rentals, Assignments, Miscellaneous Instruments

Kenda Montoya 505-827-5749 Rubel Salazar 505-827-5730

Veronica Gonzales 505-476-4538

Sand and Gravel, Caliche, General Mining,

Jason Smith 505-827-5743

Chris Gonzales 505-827-5783

OGMD Office Procedures, Division Administration

Allison Marks, Division Director 505-827-5745 Jordan Kessler, Assistant Commissioner 505-827-5746

Jack Yates, Deputy Director 505-827-5750 Samantha Romero 505-827-5744

Reduced Royalty, Engineering, Reservoir Analysis

Anchor Holm 505-827-5759

Water Easements, SWD

Faith Crosby 505-827-5849 Mike McMillan 505-827-5788 David Gallegos 505-476-0378

OUR MISSION IN THE OIL, GAS AND MINERALS DIVISION

OPTIMIZE REVENUES WHILE PROTECTING OUR HERITAGE AND OUR FUTURE